529 College Savings Plans

A 529 College Savings Plan is a tax-advantaged investment account designed to help families save for future education costs. Money contributed grows tax-free and can be withdrawn without taxes when used for qualified expenses, such as tuition, fees, and room and board. There are two types: prepaid tuition plans, which allow you to pre-pay tuition at current rates, and education savings plans, which let you invest in various financial options. Each state may offer its own plan, often with tax benefits for in-state residents. These plans are flexible, allowing funds to be used for various accredited institutions.